Guatemala highway stalled causing problem

A stalled highway project in Guatemala is causing serious problems for the country.
June 28, 2017 Read time: 1 min

A stalled highway project in Guatemala is causing serious problems for the country. Construction work on the CA-2 Occidente highway project was halted following investigations into the practices of Brazilian contractor Norberto Odebrecht. The work is only partially complete, with just 30% of the construction having been carried out. However the contractor has already been paid around 70% of the funds required to build the highway.

This leaves Guatemala’s Ministry of Communications, Infrastructure and Housing (CIV) in a difficult position. CIV may have to formally annul the previous contract and offer the remainder of the works due for completion under a new tender process. However recovering the funding already paid out to the Brazilian contractor may be challenging, given that the firm is immersed in financial problems following investigations into its business practices in its home country and elsewhere in Latin America.

Finance & Funding Road Structures

Related Content

  • Honduras – Guatemala highway connection being built
    November 27, 2019
    Construction work is now underway in Honduras for the highway connection linking the country with neighbouring Guatemala.
    Read More
  • Colombia road project targets may not be met
    October 10, 2017
    The ambitious road development programme set out by the Colombian Government may not meet all of its targets. The National Development Plan of 2014-2018 has set out plans for the completion of key road and highway connections, including several bridge and tunnel links. However, Colombia's National Infrastructure Agency (ANI) has so far attained 50% of the targets set out in its road development programme for the period.
    Read More
  • Golden opportunities in the MINT - Mexico, Indonesia, Nigeria, Turkey
    May 21, 2015
    Mexico, Indonesia, Nigeria, Turkey – Global Report offers up some food for thought about where smart money might be headed within the next several years – David Arminas writes China’s rate of growth may be slowing down, but other South East Asian companies are being quick to offer alternate investment opportunities, notably Indonesia. Nigeria, too, has had issues with security of investment. But there are signs that the government may be getting serious at last about tightening up rules and regulation
    Read More
  • Developments in hybrid vehicles
    February 27, 2012
    There is an array of future vehicle solutions in development - Mike Woof reports. Ever since Henry Ford's Model T showed that the motor car could provide transport for ordinary people rather than being an exclusive toy of the rich, vehicle numbers have exploded. In every country around the world, vehicle ownership continues to grow.
    Read More

Highlighted Content